Gains in Apple pushed U.S. stocks higher even after a fresh batch of data paved the path for the Federal Reserve to stay aggressive.
The S&P 500 and the tech-heavy Nasdaq 100 rose more than 1%.
Apple buoyed both indexes after it delivered just enough good news in its quarterly report on Thursday.
Shares of Microsoft and Google parent Alphabet Inc. also climbed, snapping a two-day decline.
Amazon.com plunged as much as 12%, falling below its $1 trillion market value.
Lackluster earnings from big-tech firms including Amazon, Alphabet and Meta Platforms Inc. have kept investors on the edge this week.
And despite largely topping analysts’ estimates, Apple still warned of a holiday slowdown.
But disappointing corporate reports are not enough to prompt a Fed pivot, according to Andrew Patterson, senior international economist at Vanguard.
“The Fed is looking for signs of easing or weakening pressures in the broader economy, in financial markets,” Patterson said by phone.
“Weak earnings is no reason for them to take their foot off the tightening accelerator. In fact, it gives them hope that they are having the intended impact.”
Data on Friday showed that a core gauge of U.S. inflation accelerated in September, while consumer spending stayed resilient, bolstering the Fed’s case for another jumbo rate hike next week.
U.S. employment costs also rose at a firm pace, which will likely keep the central bank on its path.
However, other data that released this week, including lower-than-expected U.S. home sales, indicated that Fed tightening is already hitting the economy.
Economists are still expecting the Fed to raise rates by three-quarters of a percentage point for the fourth time in a row next week. Treasuries remained weaker as hopes of a pivot fizzled.
The ECB delivered a second straight 75 basis-point hike on Thursday but dropped a prior reference to rate increases continuing for “several meetings,” an outcome that was considered dovish.
The central bank has a small margin for error after German inflation unexpectedly accelerated this month to 11.6% from a year earlier – far exceeding all estimates in a Bloomberg survey whose median forecast was 10.9%.
The Bank of Japan held its negative rate, 10-year yield cap and asset purchases at the end of a two-day policy meeting, in line with the view of 49 economists surveyed by Bloomberg.
Chinese assets remain in focus, with foreign investors dumping a record amount of mainland China stocks this week and sending Hong Kong equities to a 13-year low.
President Xi Jinping’s tightening grip on power hasn’t had the same impact domestically, with mainland investors hunting for bargains in Hong Kong.
